Course content

The course is an advanced course in financial accounting. It shall provide a basis for reflecting on key parts of the theoretical foundation for the financial accounts, as well as provide insight into the theory and practical application of key valuation models in the accounts.

Learning outcome

Knowledge

The Student

• Has basic knowledge of accounting regulation in theory and practice.
• Has knowledge of the basic assumptions and principles in the historical cost model.
• Has knowledge of the generally accepted accounting principles in the Norwegian accounting act.
• Has basic knowledge of IFRS Conceptual Framework for Financial Reporting and some selected International Financial Reporting Standards (IFRS).
• Has in-dept knowledge of recognition and measurement of assets, liabilities, income and expenses in accordance with the Norwegian accounting act and good accounting practice (NGAAP) with emphasis on:
  • Recognition of revenue
  • Fixed assets
  • Intangible assets including goodwill
  • Construction contracts
  • Liabilities including income tax
  • Equity and distribution of share dividends to shareholders
• Has knowledge of alternative approaches to valuation of items and corporate valuation, including consideration of sustainability
• Has knowledge of substantial measurement problems in financial accounting in accordance with Norwegian Accounting Act and good accounting practice (NGAAP).
• Has knowledge of measurement principles in some selected International Financial Reporting Standards (IFRS)

Skills

The Student

• Can recognize and measure key assets, liabilities, income and expenses in accordance with Norwegian accounting act and good accounting practice (NGAAP) and some selected International Financial Reporting Standards (IFRS)
• Can estimate cost of capital for valuation of items and corporate valuation
• Can apply alternative approaches to valuation of items and corporate valuation

General competences

The Student

• Can acquire new knowledge within the above-mentioned subject areas

Learning methods and activities

Lectures and compulsory project assignment written in groups of 2-3 participants.

Compulsory assignments

• Project Work

Specific conditions

Recommended previous knowledge

The course is based on BØA1200 Financial accounts with analysis, BØA2200 Financing and investment and BØA2033 Annual accounts.

It is recommended to have basic skills in using spreadsheets beforehand.

Required previous knowledge

None

Course materials

Information about literature at the beginning of the term

Credit reductions